Risk Instability and the Pattern of Foreign Direct Investment in the Middle East and North Africa Region

This paper demonstrates that instability associated with investment risk is critical in explaining the level of foreign direct investment for the Middle East and North Africa (MENA) countries, which generally have higher investment risk than developed countries. The empirical results support this hy...

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Bibliographic Details
Corporate Author: International Monetary Fund
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2004
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Risk Instability and the Pattern of Foreign Direct Investment in the Middle East and North Africa Region 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2004 
300 |a 19 pages 
651 4 |a United States 
653 |a Investments, Foreign 
653 |a Finance 
653 |a Short-term Capital Movements 
653 |a Current Account Adjustment 
653 |a Balance of payments 
653 |a Long-term Capital Movements 
653 |a Exports and Imports 
653 |a General Financial Markets: General (includes Measurement and Data) 
653 |a Capital account 
653 |a International economics 
653 |a Capital flows 
653 |a Emerging and frontier financial markets 
653 |a Financial services industry 
653 |a Capital movements 
653 |a Finance: General 
653 |a International Investment 
653 |a Foreign direct investment 
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490 0 |a IMF Working Papers 
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520 |a This paper demonstrates that instability associated with investment risk is critical in explaining the level of foreign direct investment for the Middle East and North Africa (MENA) countries, which generally have higher investment risk than developed countries. The empirical results support this hypothesis, whether either the standard deviation or the interquartile range is used as a measure of instability, in a dynamic panel model. The paper recommends a reorientation of policies toward those with a longer-term focus in order to help lower the degree of risk instability for MENA countries